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Roles of Fiscal Policy in New Zealand

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Author Info

  • Felicity C Barker
  • Robert A Buckle
  • Robert W St Clair

    ()
    (The Treasury)

Abstract

Economic growth is one of the objectives of the current government. Fiscal policy, encompassing government expenditure and taxation decisions, can significantly impact on economic growth. This paper proposes a framework which views fiscal policy through three lenses and applies this approach to consider how fiscal policy affects economic growth. The three lenses are: fiscal sustainability, fiscal structure and fiscal stabilisation. The paper reviews international literature pertaining to these three lenses and discusses the extent to which these lenses are incorporated into New Zealand’s current fiscal framework. Contemporary New Zealand fiscal challenges are discussed and, in light of these challenges, the paper concludes with consideration of areas to investigate which may yield improvements to the New Zealand fiscal framework.

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File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2008/08-02/twp08-02.pdf
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Bibliographic Info

Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 08/02.

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Length: 61
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:nzt:nztwps:08/02

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Web page: http://www.treasury.govt.nz
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Related research

Keywords: Fiscal policy; sustainability; stability; structure; taxation; government spending; economic growth;

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References

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Citations

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Cited by:
  1. Saten Kumar & Don J. Webber & Scott Fargher, 2009. "Wagner’s Law Revisited: Cointegration and Causality tests for New Zealand," Working Papers 0917, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  2. Robert A. Buckle & Aaron Drew, 2008. "The business cycle, housing and the role of policy: summary of a recent conference held by The Treasury and the Reserve Bank of New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 71, March.
  3. Lees, Kirdan, 2013. "Fighting fit? Assessing New Zealand’s fiscal sustainability," NZIER Working Paper 2013/5, New Zealand Institute of Economic Research.
  4. Robert A Buckle & Amy A Cruickshank, 2013. "The Requirements for Long-Run Fiscal Sustainability," Treasury Working Paper Series 13/20, New Zealand Treasury.

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